Multiple Pathways to Clean Energy: Canada’s Western Provinces

REGINA | May 8-9, 2017 Hotel Saskatchewan

Clean energy has become a central policy goal of Canada’s western provinces. It is seen as a pathway to achieve

provincial emissions reduction targets, to diversify provincial economies, and to foster growth in green business,

investment, and new types of jobs.

To fulfill its strategic goals of informing public policy and fostering objective and open energy dialogue, the Energy

Council of Canada organizes conferences across Canada which engage a broad cross-section of policy-makers,

energy leaders, academics, and experts.

To advance the dialogue on the emerging energy-related opportunities and issues related to the transformation

to clean energy, the Energy Council of Canada, together with its member organizations from the public and private

sectors across the region, held a conference on the theme Multiple Pathways to Clean Energy in Western

Canada. The goals of the conference were: to profile the policies and initiatives underway, to better understand

the “lessons learned” and the issues in play, and to find promising solutions towards achieving each jurisdictions’

goals.

The conference bought together 160 attendees on May 8 and 9 in Regina, Saskatchewan. Keynote sessions heard

policy insights from provincial energy and environment ministers from western Canada, and from the federal

Parliamentary Secretary to the Minister of Natural Resources Canada. Sessions examined three ‘’pathways’’ to

clean energy, two pertaining to the individual jurisdictions, and a third calling for close collaboration to seize an

emerging regional opportunity:

• Transformation of electricity generation: The diversity of the strategies and actions in each jurisdiction

which are greening the generation mix;

• Climate Policy: Each province has implemented climate policies matched to the characteristics of their energy

sectors and their policy design preferences. Issues are the track record to date of emissions reductions, the

impact on energy prices, the interplay between provincial and national policies, and the outlook for carbon

policy in the future.

• Regional collaboration to build a western Canada electricity grid: The opportunity agenda to further

develop the idea of a regional grid, including supply and demand synergies, investments required, the

implications for market operation and regulation, and the critical path ahead.

Keynote Opening Address – Evening Reception, May 8

Opening the reception with warm greetings on behalf of the Government

of Saskatchewan was The Honourable Scott Moe, Minister of the

Environment.

Minister Moe described how the province of Saskatchewan has

implemented measures to address the climate change challenge within

its jurisdiction, while avoiding actions that could affect the competitive

position of the province’s trade-exposed industries. In essence, balancing

the policy goals of environmental sustainability and competitiveness.

The province’s policy goal for the generation sector is aggressive: a

phased approach to achieving 50% of capacity based on renewables by

2030, from the present 25% share. Actions include investment in world-leading, commercial scale carbon capture,

use and storage projects, which have captured 1.5 Mt of CO2 to date and will extend the plant’s operating lifetime,

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and the issuance of a white paper that spells out three pathways on climate change: innovation, mitigation and

adaptation to climatic changes. Since 2005, emissions intensity has decreased by 12% and in the same period the

province’s GDP has increased by 25%.

He noted that the province is at odds with the proposed federal carbon tax, since it would make Saskatchewan’s

industries less competitive, preferring a multiple pathway approach that takes full account of the impacts on

people and industry.

Minister Moe pointed out that Saskatchewan’s technologies and experience in carbon management will be a great

aid to countries which are increasing coal-fired generation to manage their emissions. In parallel, zero-till

agricultural practices in Saskatchewan are increasing soil carbon and reducing fuel consumption.

He closed by underlining the progress made by industry in reducing emissions intensity, an impressive reduction

of 80% less CO2 and 64% less energy in the steel industry, and pointed to Saskatchewan’s leadership position in

technology, innovation and leading-edge carbon management projects.

Highlights from the Program – May 9

Policy directions from the provinces of Manitoba, Saskatchewan and Alberta were aired in the Energy Ministers’

Panel chaired by Deborah Yedlin, Business Columnist, Calgary Herald:

• The Honourable Dustin Duncan, Minister of Energy and Resources, Saskatchewan;

• The Honourable Margaret McCuaig-Boyd, Minister of Energy, Alberta; and,

• The Honourable Cliff Cullen, Minister of Growth, Enterprise and Trade, Manitoba

Minister Duncan underlined the central role that clean

energy plays in Saskatchewan’s future from an economic,

technological and resource perspective. Policies have

been put in place to increase the share of renewables to

50% in Saskatchewan’s energy mix by 2030 and significant

investment in carbon capture and storage technologies,

seen as key elements in making emission reductions

possible for developing countries relying on coal-fired

generation to grow their economies. Exports make up a

significant share of the province’s economy, led by oil,

potash, and uranium.

Preserving Canada’s competitiveness, particularly with respect to trade with US markets was underlined as an

important policy goal. Minister Duncan concluded that energy offers Saskatchewan both a challenge and an

opportunity, and that he looks forward to leading the transition.

Speaking on behalf of the government of Manitoba, Minister Cullen advocated a policy approach that balances

both the economy and the environment simultaneously, not in opposition; further development of the Canadian

Energy Strategy was mentioned as a pathway to pursue. Manitoba’s advantages include a well-established

electricity trade with Minnesota and neighbouring US states, successful innovations in the transportation sector,

a new agency responsible for energy efficiency initiatives, and the creation of a new department responsible for

Sustainable Development. To address climate policy issues, including climate policy, a carbon tax and the impact

on electricity rates, the province will be issuing a framework document as a basis for public dialogue.

Alberta’s energy minister, Margaret McQuaig-Boyd, summarized the elements of the Climate Leadership Plan in

her opening remarks: 30% of generation from renewables by 2030, off coal by 2030, the $30 per tonne carbon

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levy, the fixed limit on GHG emissions from oil sands operations, and methane emission reduction targets.

Offsetting the policy impacts are tax reductions for small businesses, rebates for households and investments in

energy efficiency and green infrastructure. To ensure that sufficient capacity is available when needed in an

electricity system with an increasing share of intermittent renewables, Alberta will be investing in new back-up

capacity based on natural gas. Discussions are underway to develop more interties with neighbouring jurisdictions

to ensure overall system reliability and enhance sustainability.

In the following discussion led by Deborah Yedlin, additional aspects raised were positive prospects for increasing

inter-provincial electricity trade, although it will take time and careful planning, and the necessity of federal

funding for transmission projects to make this possible. To ensure that Canadian companies remain competitive,

maintaining the ongoing energy dialogue between governments in Canada and their U.S. counterparts is essential.

Also cited as a central policy goal was keeping the focus on achieving emission reductions and preserving

competitiveness, while preserving the flexibility of provinces to use a variety of policy tools matched to their

particular situation and policy preferences.

Transformation of the Electricity Generation Mix

A diverse mix of strategies and actions in western Canada are transforming electricity generation, providing an excellent starting point for examining the progress to date, lessons learned, and the impacts to date of the transformations underway.

One interesting aspect will be how each jurisdiction is managing their

increasingly-diverse generation fleet to match requirements in systems

with a combination of centralized, distributed, base load and intermittent

sources, and at the same time, to meet environmental and cost-

effectiveness objectives.

In his opening remarks, Mike Marsh noted that

transformation of a province’s generation mix is a complex

and long-term process. Dimensions in Saskatchewan and

Alberta involve finding ways to continue use of fossil

resources in a clean and sustainable manner, keeping

electricity affordable for consumers and industry, and

keeping an open mind about the various pathways to

clean electricity.

The discussion amongst the panelists revealed several key observations about future electricity systems.

• It is important to remember that the policy goal should be stated simply as aiming for clean, reliable, low-

carbon electricity, without limiting the range of clean generation technologies that could contribute to

achieving the goal.

• Second, all environmental impacts should be considered in addition to GHG emissions, including the full cycle

of producing the fuel, the impacts when it is used for electricity generation, and then disposal of the waste

and by-products.

• Recent progress has been made in the use of electricity storage technologies, particularly as a pathway in

combination with intermittent generation from wind and solar.

• Making the cost of each addition to the electricity system explicit is essential. This is a key component of

decision-making, a means to avoid premature use of costly technology solutions which could further increase

consumers’ electricity bills.

Session Chair: Mike Marsh President and CEO, SaskPower

• Dr. John Barrett, President and CEO,

Canadian Nuclear Association

• Allan Fogwill, President and CEO,

Canadian Energy Research Institute

• Siegfried Kiefer, Chief Strategy Officer,

ATCO Ltd. and Canadian Utilities Limited,

President, Canadian Utilities Limited

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• Access to clean electricity was cited as a fundamental right; on the order of one billion people do not have

access to electricity at all, and another two billion experience very unreliable electricity supply.

• Issues having a bearing on the electricity sector were mentioned by the panelists; the need for collaboration

between jurisdictions to optimize generation and distribution for the region; finding solutions to meet the

varying characteristics of each province (e.g. 75% of Alberta’s load is industrial); and, dealing with the

uncertainties arising in the United States from federal revisions to climate policy, new taxes which could

impact Canada’s energy exports, and market instabilities caused by higher shares of generation from

renewables.

• Small modular reactors were described as an interesting emerging technology option, featuring a small

underground “footprint’’, the ability to operate 24/7 for several years, their suitability for use in remote off-

grid communities and mining sites, and the co-production of heat for industrial applications.

• Maintaining diversity of generation sources was identified as an essential feature of future generation systems

as capacity is increased to meet increases in demand. An example was maintaining generation from natural

gas in systems which are moving to a larger share of renewables.

• A closing comment emphasized that an open dialogue is essential about the optimum mix of generation

sources for electricity systems of the future, taking an explicit, evidence-based account of the impacts on

electricity costs, environmental impacts, and use of a diversity of options including coal with carbon capture,

enhanced by benefits arising from interprovincial trade.

Key points in this session on transformation of the generation mix were the importance of: not pre-determining

or biasing technology choices; developing cost-effective energy storage; choosing a diverse mix of cost-effective

options involving a combination of fossil fuels, nuclear options, and renewables; not over-burdening only the

electricity system with policy initiatives to achieve GHG targets; keeping the public informed and engaged;

avoiding unintended consequences such as reducing competitiveness; and, improving further on Canada’s current

electricity generation sector, which is already 80% emissions-free.

Climate Policy

Each province has implemented climate policies matched to the

characteristics of their energy sector and their policy design

preferences. The range of GHG mitigation policies in place span the

policy spectrum: carbon regulation and the flow of funds to technology

development, major technology investment in carbon capture and

storage, transformation of the electricity generation mix and sectoral

implications, GHG limits on specific sectors, and carbon pricing and cap

and trade regimes.

In parallel, policy initiatives have been implemented to address

adaptation to the impacts of climate change. Examples of impacts are extreme weather events which are becoming more

frequent and more severe, the interplay between energy and water use and availability, and the long-term implication of

climate trends on energy from renewables and hydro.

Session Chair: Martha Hall Findlay President and CEO, Canada West Foundation

• Paul Kariya, Executive Director,

Clean Energy BC

• Jack Mintz, President’s Fellow, School of Public

Policy, University of Calgary

• Leah Nelson-Guay, CEO, First Nations Power Authority of Saskatchewan

• Dave Sawyer, Environmental Economist, EnviroEconomics

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Issues discussed were the track record to date of emissions

reductions, the impact on energy pricing, the interplay

between provincial and national policies, and the outlook for

carbon policy in the future.

The challenges, opportunities, and complexities of the

various climate policies across the country were discussed by

the panelists.

• BC’s carbon tax, which has been set at $30 per tonne

since 2012 from $10 per tonne in 2008, applies to

transportation fuels, home heating, and electricity. It is

generally seen as a success story for carbon policy.

Although the decrease in GHG emissions is frequently

attributed to the carbon tax, complicating factors are the changing make-up of the BC economy and changes

in consumer preferences.

• Making the cost of carbon explicit in discussions of carbon policy options would result in a better-informed

understanding of the broader economic implications of particular policy options.

• The suite of climate policies in place today will not limit temperature increase to the targeted 2o C limit; an

increase of 3.5o C is more likely.

• Climate policy design should ideally focus on achieving actual GHG reductions at the lowest possible cost

through actions determined in the energy market in order to preserve competitiveness and to limit the

increases in energy prices for consumers. For example, the analysis of options should consider whether it

makes sense to phase out coal-fired electricity or rather make use of carbon capture and storage and other

emission reduction technologies so that coal-fired generation from existing plants can continue.

Consideration of ways to maintain competitiveness needs to include all policies affecting a sector, not only

the addition of new climate policies.

• Other carbon policy aspects to avoid are policies which negatively impact provincial and national

competitiveness, stacking on costs arising from provincial and federal policies, and ‘’start-stop’’ policy swings

or reversals by successive governments which create confusion and disruption for decision-making involving

long-term pathways and associated investments.

• There are social dimensions of implementing carbon policies for Canada’s First Nations which must be

considered. For First Nations communities, the discussion of the many social dimensions must start and

continue with honour, trust, and respect. This approach will foster genuine, value-based cooperation

between indigenous peoples, governments, and energy companies which includes consideration of education,

health care, and demographic dimensions.

• Greater use of renewable energy technologies is consistent with First Nations’ interests and many

opportunities for projects creating business opportunities are being pursued.

• Policies to increase procurement by project developers and governments of goods, services and labour from

First Nations’ communities and companies open promising pathways.

• One important missing ingredient is a means to monitor the impact of climate policies. Collection, analysis

and reporting of comprehensive and reliable data for this purpose is critically needed. A commission to

develop recommendations for Canada-wide collection and posting of comprehensive energy data was

recommended.

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Key points raised in this session were the need for: national leadership acting altruistically in Canada’s best

interest; engaging politicians in the federal, provincial and municipal governments; some way to consolidate the

results from the diverse mix of policies which have emerged to date; recognition of the implicit carbon prices and

social impacts arising from individual policy initiatives; and, a source of comprehensive and reliable data which

reveals the actual reductions achieved, the cost per tonne, and the broader economic impacts.

Keynote Luncheon Address

An excellent overview of federal energy policy and recent government

initiatives was provided by Ms. Kim Rudd, Parliamentary Secretary to the

Minister of Natural Resources, Government of Canada.

Ms. Rudd opened her remarks by noting the importance of the partnership

between government and Canada’s indigenous peoples.

Generation Energy was launched on April 21, consisting of cross-Canada

consultation over the next six-months to help answer the question: what

does a clean, prosperous, and affordable energy economy that preserves our

competitive position and is reflective of our values look like in 2050, and what

are the milestones to make progress to that end? Aspects that will have a

bearing on Canada’s energy future are many: our capacity to innovate with

the Canadian Oil Sands Innovation Alliance being one example; the most recent federal Innovation Budget with

funds identified for energy projects and energy technology development; our commitment to the 2015 Paris

Agreement on Climate Change; energy’s central role as the source of 80% of Canada’s GHG emissions; and, new

uses for captured CO2 in commercial products. Ms. Rudd underlined the important role to be played by energy

efficiency improvement, which have the potential to eliminate almost half of Canada’s current emissions.

Ms. Rudd closed her keynote address by profiling the federal government’s Pan-Canadian Framework on Clean Growth

and Climate Change policy, designed to meet our emissions reduction target and grow the economy. The plan includes a

pan-Canadian approach to pricing carbon pollution, phase-out of coal-fired electricity generation, and measures to

achieve reductions across all sectors of the economy. It also aims to drive innovation and growth – increase technology

development and adoption to ensure Canadian businesses are competitive in

the global low-carbon economy.

Regional Electricity Grid in Western Canada

To date, electricity generation, transmission, and distribution have been

largely provincial matters, coupled with north-south electricity trade with

neighbouring jurisdictions in the northern United States.

Dialogue is underway on the idea of expanding electricity trade amongst the

western provinces. A regional electricity transmission system would enable

an increase in generation from hydropower, to more readily share generation

from renewables across the region, to meet peak load in one jurisdiction in

times of low demand in a neighbouring jurisdiction, and to increase supply

diversity.

The opportunity agenda was described and a good discussion followed on

developing the idea of a regional grid further. Elements discussed were

Session Chair: Kelvin Shepherd, President and CEO, Manitoba Hydro

• David Boyd, Vice President,

Government and Regulatory Affairs,

Midcontinent Independent System

Operator

• Keith Cronkhite, Senior Vice

President, Business

Development and Strategic

Planning, NB Power

• Jerry Mossing, Vice President,

Transmission,

Alberta Electricity System Operator

• Niall O’Dea, Director General,

Electricity Resources Branch, NRCan

• Doug Opseth, Director,

Supply Planning and Integration,

SaskPower

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studies into the features of a regional grid, investment which will be needed in new generation, market control and

regulation, and the critical pathway ahead.

• The session opened with an illustration of the extensive ongoing electricity trade in a north-south direction between

Canadian provinces and neighbouring U.S. states. In

comparison, the current east-west flow of electricity is very

limited. In addition to facilitating electricity trade, the

benefits of an enhanced regional grid in western Canada

include synergies involving a variety of generation sources

to satisfy differing patterns of demand, greater reliability,

preservation of competitiveness as a result of lower

electricity prices, and greater security of the overall electricity system.

• Electricity was identified as a cornerstone component of the federal government’s Pan-Canadian Framework for Clean

Growth and Climate Change. NRCan sees itself as a facilitator, ready to enhance opportunities for regional

collaboration and provide financing of up to $29 billion during the next eight years to help make projects happen.

Arrangements could be in the form of bilateral agreements with the provinces, support from the new Infrastructure

Bank, and targeted programs which develop new energy technologies.

• An important new federal-provincial study, The Regional Electricity Cooperation and Strategic Infrastructure Initiative

(RECSI), has been launched. The main objective is to evaluate and rank the most promising electricity infrastructure

projects in the Western provinces with the potential to assist Alberta and Saskatchewan transition to a sustainable

non-emitting electricity generation portfolio. The study will examine ways to access additional hydroelectric

generation, to displace coal-fired generation, to increase generation from other renewable energy technologies, and

to develop options for electricity storage. The RESCI report is due at the end of 2017.

• Implementation of the dramatic changes under Alberta’s Climate Leadership Plan is underway. The plan calls for 30%

of generation from renewables by 2030; the first call is for an incremental 400MW of generation from renewables.

The coal phase out is underway, aiming for elimination of the current 6,300 MW of coal-fired generation by no later

than 2030, including for plants that have end-of-life dates after 2030. Alberta has the lowest amount of

interconnection to neighbouring markets, making the prospect of increasing interconnections attractive.

• The challenges associated with Saskatchewan’s transformation of the generation mix include: meeting a growing

demand; aging generation and transmission infrastructure; regulatory uncertainty around coal phase out; and, the

important task of keeping electricity prices affordable in order to preserve the province’s competitive position.

Saskatchewan has set the aggressive goal of 50% of generation from renewables in 2030 (including 30% from wind).

The province sees the advantages of a regional grid in providing back-up in the event of outages, an opportunity to

sell excess power to neighbouring markets. Additional capital from sources outside the province will be needed to

create new interconnected transmission capacity.

• In addition to the federal-provincial dialogue underway about a western regional electricity grid, there is a parallel

dialogue underway with the provinces of Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward

Island in eastern Canada.

• Interprovincial and international electricity trade are well-established in Atlantic Canada, soon to be enhanced by the

Maritime Link transmission system linking Newfoundland and Labrador to the Nova Scotia grid. Connections to

northeastern U.S. states will need to be expanded to handle the anticipated increase in export-import flows. An

example of interconnections between two neighbouring provinces is the successful Joint Dispatch Project operated

by NB Power and Nova Scotia Power.

• Regional electricity trade is well developed through the Midcontinent Independent System Operator (MISO) which

provides open-access transmission service and monitors the high-voltage transmission system throughout the

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Midwest and Southern United States, and also with Manitoba; 125,000MW of generating capacity in a region with 42

million people. The MISO is an excellent source of advice and ‘’lessons learned’’ to guide discussions to develop

increased regional interconnections in western Canada.

• Observations made in the panel’s discussion was that there is a much greater need to develop province-to-province

interconnections in order to meet the generation transformation goals set by Alberta and Saskatchewan, and to

maintain voltage and frequency regulation in systems with an increased share of intermittent generation.

• New tariff agreements will be needed to facilitate interprovincial electricity trade; Manitoba, Saskatchewan and British

Columbia have open access arrangements in contrast to Alberta.

• While the concept of an interconnected system amongst the four western provinces is an attractive, long-term goal,

it is likely that the first projects will create enhanced bilateral connections between BC and Alberta and Saskatchewan

and Manitoba.

• Public policy aspects that need to be addressed are to convince people of the value equation arising from increased

electricity trade with their neighbouring provinces, the increase in investment and jobs for construction of new

transmission lines, and ways to offset the loss of jobs that will occur as coal is phased out and replaced in part by

natural gas.

To summarize, there is a significant opportunity at hand to substantially increase the interconnections between

Canada’s western provinces. Enhanced reliability and grid stability, enabling the transformation from coal-based

generation systems to a greater share of clean generation, and profiting from sale of excess power to a

neighbouring jurisdiction were seen as advantages of increased electricity trade. Requirements to make this

happen were cited as significant; new financing from the federal government for new transmission capacity;

convincing the public of the advantages of increased trade; and, providing support for workers and company

towns impacted negatively by the transition from coal to a cleaner generation mix.

Closing Session: An Energy Conversation

Martha Hall Findlay, President and CEO, Canada West Foundation,

and Deborah Yedlin, Business Editor for the Calgary Herald, joined

Graham Campbell on the stage for a closing ‘’energy

conversation’’. They shared thoughts on some ‘’take aways’’ from

the Keynote Addresses and the three Panel Sessions, reflected on

the overall theme, identified some aspects which had been

overlooked, and suggested key elements to move forward on ‘’pathways to clean energy in western Canada’’.

Commenting on what had been heard during the day, the panelists made several important observations:

• Policy initiatives to date by provincial governments have resulted in a diverse array of goals, strategic

directions, and programs. While recognized as a consequence of the provinces’ leading role on energy,

fragmentation and the lack of any signs of coordination will limit the prospect of achieving Canada’s emissions

reduction goals.

• Often overlooked in the policy fray is the important goal of not undermining Canada’s competitiveness in

North American markets and globally. This risk is exacerbated by the as yet unknown energy policy directions

of the U.S. administration and their potential impact on the energy sector in Canada.

• Another factor bearing significantly on the future of the energy sector is regulatory uncertainty, particularly

for major energy projects which open pathways to export markets for Canadian energy commodities. The

recently-released task force report on assessment of impacts from resource projects has increased concerns

amongst energy stakeholders. Ensuring that regulatory decisions are the responsibility of independent

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agencies, acting in accordance with their government’s legislation, was recommended as the best pathway

forward.

• Coming to grips with effective ways to earn public acceptance for major energy projects and raising public

energy awareness will foster a more informed and inclusive approach.

• Social media was seen as both beneficial, facilitating dialogue with a broad and diverse cross-section of

interests and demographics, and also as a purveyor of false and misleading information, often resulting in

mobilization of widespread negative positioning on energy matters.

• An aspect overlooked in the conference is the role that technology is playing now to reduce environmental

impacts and the impact of as-yet-unknown potential of new breakthrough technologies. These could

significantly reduce emissions from upstream oil and gas production and end-use applications. They dispelled

the false notion that the energy sector is “old tech”; in fact, the exact opposite is true, citing the “digital

oilfield” as one example.

Closing Summary

General observations from the discussion during the event complete the highlights:

• There is alignment on the principle that a prudent balance can be achieved on the dual pathways of developing

Canada’s natural resources, and at the same time, protecting and preserving the environment.

• The design of climate change policies needs to take other policy considerations and strategic goals in to careful

consideration. The example of potentially-negative impact of climate policies on provincial competitiveness was

mentioned frequently, particularly impacts on trade-exposed sectors of the economy and the consequence of higher

electricity prices on profitability.

• The social impacts arising from implementing climate policies need more attention. For policies and projects affecting

Canada’s First Nations, early and open dialogue built on the values of honour, trust and respect is essential.

• There is abundant evidence of continuing leadership by the western provinces in designing and implementing a wide

range of climate policies. Noteworthy examples of in-place initiatives are B.C.’s carbon tax, carbon regulation in

Alberta, world-leading technology investment in Saskatchewan, aggressive transformations of the electricity

generation mix, and energy efficiency programs in Manitoba.

• Strong recommendations to policy-makers are to make explicit the cost per tonne of each GHG reduction policy, and

also the potential economy-wide implications of new policy initiatives.

• Governments need to make a concerted effort to "keep the public with them" as they introduce and implement carbon

policies, reducing the risk of losing public support.

• Policy-makers should set targets for emissions reductions but not subscribe or limit the types of technologies available

to companies; that is, no "picking winners" or "eliminating technologies". Examples were given of technology

pathways that should remain open for consideration: continued use of coal-fired generation using carbon capture

technology, and small modular reactors for community-scale and remote industrial applications.

• A source of comprehensive, current and reliable data is needed now to enable objective evaluation of quantifiable

GHG reductions, cost per tonne, and economy-wide implications of carbon policies.

• There is cautious interest in the development of a regional electricity grid in western Canada. While there are clearly

recognized benefits, including improved reliability, meeting peak supply requirement, and opportunities for

moderating increases in electricity prices, there are concerns arising about the source of the large financial

investments needed to develop new regional transmission infrastructure and about the need to make the public policy

case for the benefits of new interconnections with neighbouring provinces.

• Funding for collaborative electricity infrastructure projects is available from initiatives announced in the federal

government’s 2017 Innovation Budget, and studies are underway, involving provincial governments, an electricity

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system operator, and several provincial utilities across western Canada, to identify promising opportunities to increase

bilateral and regional interconnections to facilitate increased electricity trade.

• Major challenges remaining are the design of a regulatory process for major energy projects that is inclusive, timely

and objective, and working together to develop an “altruistic national approach’’ to climate policy that respects the

role of provincial governments and the over-arching role of the federal government and moves towards solutions that

are in the best interest of Canada.

In closing, the Energy Council of Canada appreciates the excellent contributions made by the event planning committee,

and the Keynote Speakers, Session Chairs and panelists in making this event on Multiple Pathways to Clean Energy:

Canada’s Western Provinces a success.

We welcome feedback on this highlights report and we look forward to continuing dialogue in the future as the Energy

Council works to fulfill its vision of an affordable, stable and environmentally-sound energy system providing the greatest

benefit for all Canadians.

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The Energy Council of Canada is very pleased to thank the organizations which provided financial support for this

event and to our annual sponsors for their support of our activities during the year.

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